Zoom

(Reuters) – Zoom Video Communications Inc (ZM.O) nearly doubled its expectations for annual sales on Tuesday, driven by a surge in users as more people work from home and connect with friends online during coronavirus lockdowns.

FILE PHOTO: Small toy figures are seen in front of diplayed Zoom logo in this illustration taken March 19, 2020. REUTERS/Dado Ruvic/Illustration

But Zoom’s costs also rose sharply, and executives said gross margins would likely remain below Zoom’s historical norms in the coming quarters, sending shares of the San Jose, California-based down 3.5% to $200.75 in after-market trading.

The company has transformed itself into a global video hangout from a business-oriented teleconferencing tool. It came under fire over privacy and security issues, prompting it to roll out major upgrades.

The company raised its full-year revenue forecast to a range of $1.78 billion to $1.80 billion from $905 million to $915 million. Analysts

(Reuters) – Zoom Video Communications Inc (ZM.O) nearly doubled its expectations for annual sales on Tuesday, driven by a surge in users as more people use its online tools to work from home and connect with friends during coronavirus-driven lockdowns.

FILE PHOTO: Small toy figures are seen in front of diplayed Zoom logo in this illustration taken March 19, 2020. REUTERS/Dado Ruvic/Illustration

Shares of the San Jose, California-based company rose nearly 5% in extended trading after Zoom’s revenue and profit for the first quarter also beat estimates by a wide margin.

The company, which has transformed itself from a business-oriented teleconferencing tool to a global video hangout during the pandemic, had come under fire over privacy and security issues, prompting it to roll out major upgrades to its platform.

However, the latest quarterly report shows the issue had little impact on its numbers. The company said it now

FILE PHOTO: Small toy figures are seen in front of diplayed Zoom logo in this illustration taken March 19, 2020. REUTERS/Dado Ruvic/Illustration

(Reuters) – Zoom Video Communications Inc (ZM.O) nearly doubled its expectations for annual sales on Tuesday, riding on a surge in usage of its video conferencing platform due to coronavirus-driven lockdown measures globally.

Zoom, which has transformed from a business-oriented teleconferencing tool to global video hangout during the pandemic, had come under fire over privacy and security issues, forcing it to roll out major upgrades on the platform.

However, the latest quarterly report shows the issue had little impact on its numbers. The company said it now has about 265,400 customers with more than 10 employees, a near four-fold increase from a year earlier.

Zoom also reported first-quarter revenue of $328.2 million, beating analysts’ estimates of $202.7 million, according to IBES data from Refinitiv.

SAN FRANCISCO (Reuters) – Zoom (ZM.O), the video conferencing provider whose business has boomed with the COVID-19 pandemic, plans to strengthen encryption on video calls made by paying clients and institutions like schools, but not for users of its popular free accounts, a company official said Friday.

FILE PHOTO: Small toy figures are seen in front of diplayed Zoom logo in this illustration taken March 19, 2020. REUTERS/Dado Ruvic/Illustration

The company previewed its intentions on a call with civil liberties groups and child-sex abuse fighters Thursday, and Zoom security consultant Alex Stamos confirmed the plans in an interview Friday.

Stamos said the plans were subject to change and it was not yet clear which if any nonprofits or other users, such as political dissidents, might qualify for accounts allowing for more secure video meetings. He said a combination of technological, safety and business factors went into the plan,

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